I get asked this question all the time. Most people know that they need to save for their down payment, but have no idea what other savings they need to have to buy a house. So her is my listing of things you should consider
1. Closings cost: On Average this will run you about $2,500. We are currently in a seller’s market, so in order to be competitive you must have this!
2. Inspections: You will typically have 7-10 days to inspect the house from the day in go into contract. You can inspect for any and all things, but it is at your expense. Most common inspections are: general inspection, termite inspection, and in the Greater Columbus, Ohio area people do radon inspections. My advice is to do some research and decide what you want to have done and save accordingly. General inspection can run yo between $300-$600. Termite is about $100 and Radon is about $100.
3. Appraisal: Unlike an inspection, unless you are a cash buyer, you have no choice, most lenders will have you pay for this. Typically runs in the $500
4. Escrow account: When you buy a home, unless you are a cash buyer, you must pre-pay for your taxes and insurance for the 1st 3 months. It’s like a savings account that the lender puts aside to pay your taxes and insurance. Once you purchase the house, this is part of your monthly mortgage payment and most people don’t even think about it. However, this is the one portion of your monthly payment that can go up or down, the rest is fixed for the length of the term
Any other questions? Please call/text me at 614.787.6874 or email me at Rnikolova@kw.com